Simple Interest

Question 1

is the amount of money paid for the use of money.

Answer 1

INTEREST

Question 2

the amount of money borrowed or invested

Answer 2

Principal

Question 3

the percent of interest

Answer 3

Rate

Question 4

the number of years, months, or days over which the money is borrowed or invested

Answer 4

Time

Question 5

the total amount to be paid after having the interest

Answer 5

Amount

Question 6

If INTEREST is unknown, we can solve it by applying the formula:

Answer 6

Interest = Principal x Rate x Time or
I = P x R x T

Question 7

If AMOUNT is unknown, we can solve it by applying the formula:

Answer 7

Amount = Principal + Interest or
A = P + I